Monday, 26 October 2009

Since the pair breached

Since the pair breached 1.4110 to the downside, the confirmation was provided for the classical bearish pattern, shown in the side image above. This technical pattern targets 100% extension at 1.3965 levels, where we see the pair now retesting the breached neckline for this pattern. The descending channel that pattern has constructed, with its resistance level at 1.4275, will keep the downside wave valid as far as trading is intact below it, also affected by the 50 MA at 1.4230. Thus, today’s headings are to the downside but stochastic is showing the pair is attempting to move to the upside, yet if that was seen it will only be a correctional move to gather more bearish momentum to continue the move to the downside.

The trading range for today is among the key support at 1.3840 and the key resistance at 1.4460.

The general trend is to the downside as far as 1.4720 remains intact with targets at 1.2120.

Support : 1.4070 1.4020 1.3990 1.3965 1.3930
Resistance : 1.4110 1.4185 1.4230 1.4275 1.4315
Recommendation : Based on the charts and explanations above our opinion is selling the pair from 1.4100 To 1.3965 and stop loss above 1.4185, might be appropriate.

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